Amid Cold, Builders Start on Fewer New Homes

Permits Also Down as Wintry Weather Blurs Data

WASHINGTON—Home construction tumbled in January, the latest sign of cooling in the housing market as much of the U.S. shivered through a cold and snowy winter.

U.S. housing starts fell 16% last month to a seasonally adjusted annual rate of 880,000, the lowest level since September, the Commerce Department said Wednesday. That was down from an upwardly revised December rate of 1.05 million new homes built, marking the largest...